Bitcoin: IMF Sees Risk in Higher Correlation With Stocks

    Many advocates of bitcoin and other cryptocurrencies have said they can serve as hedges against declines in other financial assets, such as stocks, reducing risk for investors.

    The International Monetary Fund questions that assessment.

    Amid the expansion of digital currencies, their “correlation with traditional holdings like stocks has increased significantly, which limits their perceived risk diversification benefits and raises the risk of contagion across financial markets,” International Monetary Fund officials wrote on the group’s blog, citing new IMF research. 

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